The Australian Securities & Investments Commission (ASIC) has accepted Douglas Trood’s application to cancel his registration as a company auditor after raising concerns about his alleged failure to comply with auditor independence and conflict of interest requirements under the Corporations Act 2001 and the APES 110 Code of Ethics for Professional Accountants (including Independence Standards). Mr Trood made no admissions in relation to ASIC’s concerns. ASIC’s concerns related to Mr Trood’s involvement in the audit of a large proprietary company, including as lead auditor and engagement partner, while having a 34-year association with the audit client and concurrently holding roles as a non-executive director (1991–2004) and secretary (1989–2004), as well as being a non-beneficial shareholder (1990–2016). ASIC considered these circumstances to create significant self-interest and familiarity threats to independence that were not appropriately addressed, and noted that the alleged issues were identified through its proactive, data-driven surveillance program described in Report 817 on auditor independence and conflicts of interest.
Australian Securities & Investments Commission 2026-04-24
Australian Securities & Investments Commission accepts Douglas Trood’s auditor registration cancellation after independence and conflict of interest concerns
The Australian Securities & Investments Commission has accepted Douglas Trood’s application to cancel his company auditor registration following concerns over alleged non-compliance with auditor independence and conflict of interest requirements under the Corporations Act 2001 and APES 110. ASIC’s concerns stemmed from his long-standing association and governance roles with a large proprietary audit client, which it considered created significant self-interest and familiarity threats that were not adequately addressed.